Savings Account
T/F - Savings accounts are known as withdrawal accounts
False - savings accounts are known as deposit accounts because you should be putting more money in the account than you are taking out.
T/F - Money in your checking account should be used for emergencies only.
False- checking account money should be used for everyday things, like bills or money to go out to dinner
When you use your debit card, you are taking money out of which account?
Checking Account
T/F - A luxury car is a need.
False
What is the word that means adding money to your checking or savings account?
Deposit
T/F - The primary purpose of a savings account is to spend money for everyday things like bills.
False- the purpose of a savings account is to save money
T/F - Checking accounts go through an approval process?
True - The bank might reject your application if you’ve racked up a history of writing bad checks. Negative information typically stays on your report for up to five years.
T/F - Debit cards can be used to make purchases without a PIN
True - You can make purchases with it using the credit feature.
Shelter is considered a...
Need
What is it called when you take money out of your checking or savings account?
Withdrawal
T/F - You should use a savings account for things that you WANT to buy, not things that you NEED.
False- you should use a savings account for things like new tires or medical bills. Similar to an emergency fund
You can take money out of your checking account _________ many times per month
Unlimited- you can take money from your checking account as many times as you want every month
T/F - When you purchase something with your debit card, the money you spend does not come out of your account until the end of the week.
False - the money comes out of your account immediately
Concert tickets are considered a...
Want
Any money that moves in or out of your bank account. Includes cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers and loan payments.
Transaction
The number of ______________ is limited with a savings account or you will be charged a fee.(aka... taking money out of the account)
Withdrawals
You will receive a monthly ____________ which will list all transactions for your checking account.
Statement
Who issues debit cards? Companies or the bank?
The bank
Money that you spend is called an...
Expense
This is the money available in a checking or savings account.
Balance
The bank pays you __________ just for keeping funds in your account.
Interest/Compounding interest
What does ATM stand for?
Automated/Automatic teller machine
What does PIN stand for?
Personal Identification Number
When developing this plan, you will want to consider your needs and wants.
Budgeting/Spending and Savings Plan
The degree of uncertainty about the rate of return and the potential harm that could arise when financial returns are not what the investor expected.
Risk